Vivint Parent Company APX Group Holdings Reports Q3 Net Loss
Vivint finished the summer selling season with a 19% year-over-year gain in its direct-to-home sales channel, along with recurring revenue gains.
Vivint added 104,249 new subscribers during the third quarter, a 17.1% increase compared to the 89,019 new subscribers added during the same period in 2017.
PROVO, Utah — APX Group Holdings, the parent company of Vivint, on Thursday reported a third quarter net loss of $120.2 million, compared to a net loss of $144.4 million in the prior quarter.
The company reported total revenues of $272.3 million for the three-month period ended Sept. 30, compared to $228.7 million the prior year, an increase of $43.6 million or 19.1%. The adoption of Accounting Standards Codification (ASC) Topic 606 — which records certain previously expensed contract costs as capitalized contract costs — accounted for $11.1 million of the year-over-year increase.
Third quarter total recurring and other revenue of $272.3 million increased $53.2 million compared to the same period last year, of which $28.6 million was associated with the adoption of Topic 606.
Vivint reported a 14.1% increase in total subscribers, which accounted for approximately $29.5 million of the increase in total recurring and other revenue. The company added 104,249 new subscribers during the third quarter, a 17.1% increase compared to the 89,019 new subscribers added during the same period in 2017. The company’s direct-to-home and inside sales channels had year-over-year growth of 19.4% and 12.3%, respectively.
“In addition to strong top-line revenue growth of 19% year over year, Vivint continued to drive improvement in key operating initiatives during the third quarter, including a higher mix of third-party funding within our Vivint Flex Pay program, a meaningful reduction in service costs and further progress in reducing net creation costs,” APX Group CFO Mark Davies states in a press release.
Vivint closed an $810 million term loan and used a portion of the proceeds to retire the balance of the company’s 2019 Senior Secured Notes and repurchase a portion of its 2020 Senior Notes, Davies says.
Vivint’s attrition rate at the end of the third quarter stood at 11.8%, a slight increase (0.7%) compared to the previous quarter ended June 30. The company’s net subscriber acquisition costs per new subscriber was $1,308 for the last 12 months ended Sept. 30, compared to $1,560 for the same period the prior year.
Adjusted EBITDA for the third quarter was $141 million and net loss was $120.2 million, compared to $128.5 million and net loss of $107.9 million for the same period in 2017.
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About the Author
Rodney Bosch, Senior Editor
Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.
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